12 2 STA T .9 9 6PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8(3)NATION A L A VER A G E D AIR YF EED RATION C O S T .—Foreachm o nt h , the S ecretar ys ha l l calc u late a Nat i onal Av era g e D airy Fee dR ation C ost p er hundred w eight using the same procedures (ad j usted to a hundredweight b asis) used to calculate the f eed components of the estimated price of 16%M i x ed Dairy Feed per pound noted on page 33 of the U SDA March 20 0 8 Agricul - tural P rices publication (including the data and factors noted in footnote 4 ). (e) PAY M ENT QU ANTITY.— (1) I N GENERAL.—Subject to paragraph (2), the payment q uantity for a producer during the applicable month under this section shall be equal to the quantity of eligible production mar k eted by the producer during the month. (2) L IMITATION.— (A) IN GENERAL.— T he payment quantity for all pro- ducers on a single dairy operation for which the producers receive payments under subsection (b) shall not exceed— (i) for the period beginning O ctober 1, 200 7 , and ending September 30, 2008, 2,400,000 pounds
(ii) for the period beginning October 1, 2008, and ending August 31, 2012, 2, 9 8 5 ,000 pounds for each fiscal year; and (iii) effective beginning September 1, 2012, 2,400,000 pounds per fiscal year. ( B ) STANDARDS.—For purposes of determining whether producers are producers on separate dairy operations or a single dairy operation, the Secretary shall apply the same standards as were applied in implementing the dairy program under section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (as enacted into law by Public Law 106 – 387; 114 Stat. 1549A–50). (3) RECONSTITUTION.—The Secretary shall ensure that a producer does not reconstitute a dairy operation for the sole purpose of receiving additional payments under this section. (f) PAYMENTS.—A payment under a contract under this section shall be made on a monthly basis not later than 60 days after the last day of the month for which the payment is made. (g) SIGNU P .—The Secretary shall offer to enter into contracts under this section during the period beginning on the date that is 90 days after the date of enactment of this Act and ending on September 30, 2012. (h) DURATION OF CONTRACT.— (1) IN GENERAL.— E xcept as provided in paragraph (2), any contract entered into by producers on a dairy farm under this section shall cover eligible production marketed by the pro- ducers on the dairy farm during the period starting with the first day of month the producers on the dairy farm enter into the contract and ending on September 30, 2012. (2) V IOLATIONS.—If a producer violates the contract, the Secretary may— (A) terminate the contract and allow the producer to retain any payments received under the contract; or (B) allow the contract to remain in effect and require the producer to repay a portion of the payments received under the contract based on the severity of the violation. Contrac t s.Timep erio d . D ead l ine. A pplica b ilit y . Ef fecti v e date. Time periods.
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